46°F
Cloudy
Full Forecaste

Story Photos

Rick Hartley, owner of A Lotta Music Plus, is closing his video business after being open for just two years. Roger Werth / The Daily News

Past Month's Most Commented Stories

Home > Top Story

Evolving market leaves video-rental stores in a pinch

Monday, May 12, 2008 11:42 PM PDT

By Erik Olson

Font Size:
 
 

When the McDonald’s restaurant in Longview made renting movies as convenient as ordering a happy meal, Rick Hartley knew the show would soon be over for his video store.

Business at Hartley’s Alotta Music on Washington Way is down by about half this year, and his karaoke business is subsidizing the video store, he said. With McDonald’s offering $1 movie rentals at kiosks at three locations in Longview and Kelso, Hartley said he could see the writing on the wall.

“We just decided we better bail,” said Hartley, who will close the video store at the end of the month.

Once seen as the death knell for movie theaters, video-rental stores now are struggling to stay alive amidst stiff competition from online subscription services, such as Netflix, movies on demand from cable companies and video kiosks.

Alotta Music will be the third local video-rental store to go out of business this year. Two Ocean Beach Highway stores owned by the same company, The Movie Gallery, have closed. They were part of 950 stores nationwide the company shut down this year in an effort to better compete in the changing market, said company spokeswoman Meaghan Repko.

The Alabama-based Movie Gallery filed for chapter 11 bankruptcy last fall.

In 2007, 75 percent of all movie rentals came from traditional video stores, down from 82 percent the year before, said Jan Saxton, an entertainment industry analyst with the California-based Adams Media Research.

During that same time period, the market share for kiosk rentals more than doubled, and the number of Redbox locations nationwide is expected to triple to 30,000 by 2012, according to Saxton.

“The kiosks are growing dramatically,” she said.

The Redbox kiosks, which also appear in Wal-Mart and other retail stores, were launched in 2002 as a joint venture between McDonald’s and the Bellevue-based Coinstar, which operates coin-counting kiosks in supermarkets. The rapid growth of movie kiosks has spawned competitors, led by California-based The New Release Company expanding into supermarkets, including Fred Meyer in Longview, according to Saxton.

Each kiosk offers hundreds of new-release titles that are updated every Tuesday. The movies can be reserved online and rented and returned at any location, and customers have been drawn to the convenience, said Gary Lancina, vice president of marketing for Redbox.

The McDonald’s on 38th Avenue added the first kiosk in February, and it’s been popular with customers and boosted food sales, said Kerrie Kenoyer, the restaurant’s shift manager.

“Our sales have increased here in the past couple months,” she said.

Hartley, a retired Reynolds Metals Co. worker, said he’ll still run his karaoke business, but he’s out of the video-rental business for good after five years. At one point, he had a chance to sell the business for $25,000, but the prospective buyer couldn’t come up with the money, he said.

Rising gas prices have forced people to cut their car trips, and that’s made online rental services that send movies in the mail more attractive, Hartley said.

“Why go to a store and get one for $4.50 when you can sit at home and watch it for $4.50?” Hartley said.

No.... wrote on May 13, 2008 3:50 AM:

" Its "Why go to a store and get one for $4.50 (or more), when you can grab one from a kiosk and sit at home and watch it for $1.00!!!" Much better price, and given the way things are lately, its a better way to go. I, however, use the online subscriptions. Its much more convenient, and cost effective, and much easier and less stressful to choose what I want to watch at home on a computer screen. "

Times are a changin wrote on May 13, 2008 5:50 AM:

"
With new technologies available, unfortunetly, these buisinesses just can't compete...even these new kiosk type renters won't be around forever....with super-high speed internet right around the corner, with the ability to download an entire movie in a few seconds, all these DVD and Video type technologies will be completely obsolete. "

Not Surprised wrote on May 13, 2008 6:31 AM:

" that he's having to close after two years. Why did he open a video rental store in the age of Netflix. Didn't he read the business news about how Hollywood and other large companies were having trouble. I'm sorry to see someone lose their business and sorrier that it was because they did not make a business plan or check the market before opening. "

me wrote on May 13, 2008 6:58 AM:

" We don't just have Redbox to choose from. Safeway has DVD Play for $1.49 but give out lots of reduced rental codes on your receipts and even Fred Meyers has their own kiosk, not sure what it's called. I like the kiosk better because it's more convenient and if you're late, it's only a dollar more and you don't get attitude from anyone. (Not saying all movie rental stores employees do that) "

get a clue wrote on May 13, 2008 7:09 AM:

" These guys need to get a clue, it is not just the convenience it is the fact you don't have to return them the very next day or get a late fee. I had one place send me to collections for two dollars. After being one day late on a movie a year ago. I went in and closed my account. They haven't evolved. "

penny pincher wrote on May 13, 2008 8:32 AM:

" I'm all for supporting local business, but times are tough and it's forcing people to save where ever they can. Renting a movie for $1.08 vs. the same movie from blockbuster for $4.00+ is a smarter choice. "

and wrote on May 13, 2008 8:45 AM:

" I never really got the whole movie thing. I would rather learn something from TV, or perhaps a live event. "

Old adage wrote on May 13, 2008 8:46 AM:

" Evolve or Die. There are a lot of businesses (and households too) that can't seem to grasp the changing times - Change IS the only constant. Being a small business person, the greatest challenge of all is working your business and providing customer service while at the same time keeping a lookout on the horizon for the coming waves and always, ALWAYS planning for the contingencies. You cannot sit there with the 'deer in the headlights' look and expect not to get washed out. Same at home...we CAN pay for the higher price of things, but at what point do we recognize our behavior in doing so is absolutely, completely and utterly rediculous? Make changes folks...EVOLVE OR DIE. I now have a vegie garden for the first time in 30 years, and my neighbors are stunned I'm riding my bicycle all over town instead of driving (and I've lost 12#!). Sure, I can buy that cucumber for $1.29, BUT WHY ON EARTH SHOULD I WHEN I CAN GROW IT MYSELF? All this, and full time business too...where do I find the time...I'm evolving...Mr. Hartley: Evolve, it will be painful at first, and I'm sorry, but it will do you good, I promise! "

Change with the times wrote on May 13, 2008 8:55 AM:

" With the price of gasoline I say the new rage in local business will be bicycle repair and horseshoeing. "

Re Me wrote on May 13, 2008 9:17 AM:

" Attitude is important. It has closed a coffee shop and countless other businessess.
With money getting tight, I am going to be more choosy who I do business with. I am tired of getting treated like crap by employee's. We were in a restuarant a few months back and I told my husband I would offer the waitress a $5.00 tip just to smile. Needless to say I won't be eating there any more. Why put myself through it. "

Corporate disgust wrote on May 13, 2008 9:32 AM:

" Not only is McDonalds making money off the obesity and health of our nation, they are also stealing the money out of a hard working man/womans pocketbook. They then take this money to find more ways to sabotage you and your children. Come on people they are slowly killing our nation and because you can save $3 you are going to support that? It's sick, and it will come back and haunt you sometime in the future. "

buying bicycles and horses wrote on May 13, 2008 9:33 AM:

" We have a large home, and two acres of land. We were planning on selling so that we could move into a single level home. Our thinking has changed now. Now we are buying bicycles and horses. The cars are out to pasture. "

To old adage wrote on May 13, 2008 9:38 AM:

" I was going to say the same thing: Change or die. I have very little patience for small businesses who blame 'the other guy' (big boxes, chains, etc.) for their own business decline. If a competitor shows up, find a way to add value to your own business to make it more attractive. Others have succeeded and even flourished in the era of Home Depot and Wal-Mart. I'm not blaming the victim. I'm simply saying that if you have an option and choose not to exercise it, it's not the other guy's fault. "

sorry to see it go wrote on May 13, 2008 10:24 AM:

" I for one will be sorry to see this business close, they had weekly specials such as 2 for 1, 99 cent days, and yes they had to charge a little more for new releases, however there employees and the business owners themselves made the trip worth it, I enjoyed the conversations and made some new friends. Thanks for everything Rick and Anna, Sincerely,Aaron "

agree with others wrote on May 13, 2008 10:41 AM:

" Renting movies made sense 25 years ago when cost of buying VHS tapes far exceeded the cost of renting. Now you can purchase just about any new releases for $20. There just isn't value in renting a movie for $4 when you can purchase the same title for a bit more. That said, I hope Mr. Hartley can come up with an innovative way to put his entrepreneurial spirit towards a new venture. "

Dookie Lumpkins wrote on May 13, 2008 10:52 AM:

" This is not good. Where will people go to rent adult features? Not everyone is into mentally stimulating, plot twisting, incredible story arc tale telling movies. Some people who put the card in the timeclock, drive out that fenced off parking lot, and pay for their dollar menu dinner want to see a special interest production. Without those movies available, Cowlitz will implode. "

FanInTheStands wrote on May 13, 2008 11:17 AM:

" Businesses are in business for one reason - to make money. Business that don't evolve to the customer aren't going to last. Sad, yes, but it's life. I wish them the best, good luck. "

Just music fan wrote on May 13, 2008 11:31 AM:

" Sorry to see a local business going under. Valid point if you'd like to save some money and still support local business, The kiosks are up to 1.50 per dvd. Just music and movies in the triangle shopping center rents dvd's for just .99cents per movie per night. and just .99 cents its late. no real late fee's. plus they have THOUSANDS of movies titles as well as cd's! SUPPORT LOCAL AND SAVE! "

We like Redbox wrote on May 13, 2008 12:26 PM:

" We rented our first Redbox movie the day the Kelso McDonald's installed it. One time the machine sort of "choked up" when we returned a DVD...it took it, but never registered that it was returned. I called the 800 number and was AMAZED at the excellent customer service they provided. She made the adjustment on her end, AND gave me a code to rent 3 free movies. That's the only time we experienced a technical problem, and they fixed it immediately. It's nice to run down and rent a DVD there because we don't have any video stores in Kelso...that I know of anyway? If we go to Hollywood, we don't leave the store without spending $30. We're definitely saving money. "

Redbox wrote on May 13, 2008 12:30 PM:

" We don't eat at McDonald's (ever!), but it's the closest place to rent a DVD in Kelso. We don't have cable TV, so movie night is a special occasion for us. It's sad to see new technology make existing businesses obsolete, but it's unavoidable. "

And... wrote on May 13, 2008 12:32 PM:

" When you can buy the 'used' DVDs for the very same cost as renting in the first place. We have quite a nice library courtesy of Hullywod vids. Like the others' said- change or die. "

wrote on May 13, 2008 12:57 PM:

" Another example of Orwell's theory coming true in the shape of a that Wal Mart smiley face as big brother, and the whole country surviving only on big macs bought via the internet. It's an obvious disgrace. But, I guess we don't have to care about one another. It's not "love thy neighbor" anymore. It's "love thy major coporation." "

evolving could be good wrote on May 13, 2008 12:58 PM:

" I would gladly pay more at a regular store if I could rent documentary & educational videos, or something other than the usual mainstream garbage. I wouldn't even mind having to order & wait for certain ones that would be prohibitively expensive to buy on my own (National Geographic & many historical & technical/science videos, for example). Maybe the mom & pop video stores need to consider specializing, or doing something else along with offering specialty or special-order videos that aren't available at the kiosks. "

sorry to see them go wrote on May 13, 2008 2:09 PM:

" I for one will be sorry to see this business close....Rick and Anna are some of the nicest people in the world, and I am sorry that this is happening to them. Wish you guys the best! "

To evolving wrote on May 13, 2008 2:31 PM:

" The Longview Public Library has a nice selection of documentary and public interest dvd's available and the price is FREE to check them out. You can keep them for three days and then get more. Who wouldn't like free??? "

Want better quality wrote on May 13, 2008 2:31 PM:

" Try the library. They get DVDs that aren't necessarily mainstream commercial. "

justathought wrote on May 13, 2008 4:24 PM:

" Put in adult anything ,known fact SEX SELLS, but that will piss off the city and fuddy duddies around here .
Be inovative go out on a limb and if it is the right limb they will come .
I think you will lose your butt in Karoke as well, find a niche market that is not here . Veterans store, gun repair, shoe repair, fresh seafood, better than store bought , computer repair, website builder, e-bay consignment, thats a few I can think of.
posters instead of ranting about what should be done offer ideas as I have , some could work out . "

Dang Nabit wrote on May 13, 2008 4:29 PM:

" Now where do I go for my porn, longview with out porn is like living in toutle!! JUST END THE MADNESS WE ALL WILL DIE OF BORDOM!!! O-THE HUMANITY!!! "

about LV Library wrote on May 13, 2008 5:48 PM:

" Unfortunately I don't live in the right area, so I don't have free access to Longview's excellent public library. It's a good option for those who can use it, though. "

Library wrote on May 13, 2008 7:09 PM:

" Library,??? What the !@#$% Are you talking about ? If your far enough north, the timberland library is a very good source, better than Longview and Kelso put together. Their limit on checked out items is 200. Match that twin city backwoods library. "

lai srey wrote on May 13, 2008 9:28 PM:

" Maybe he should start renting out movies for a dollar..1 dollar a day every day, but it should be limited to two movies for a dollar rental..and late fees is a dollar...you know how much money he would make...come on movie people think...!!!!...Stop being cheap...and take chances.... "

Bald face truth wrote on May 14, 2008 12:17 AM:

" Yes times are chanding. It's good that Hartley recognizes this. too bad that Springer can't see this also. "

just music renter wrote on May 14, 2008 12:12 PM:

" actually you can rent as many movies as you want for a dollar a day and just music. not just 2 at a time. "

November 2009
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30

›› Today's Events
›› Submit An Event

View All Events

Top Jobs
More Top Jobs
Top Garage Sales
More Top Garage Sales
Top Rentals
More Top Rentals